Japan Exchange Group (8697) AI Stock Analysis

• Market Cap: ¥1.72T
• Dividend Yield: 2.8%
• Average Volume (3M): 3.19M
• Price to Earnings (P/E): 27.6
• Beta (1Y): 0.89
• Revenue Growth: 6.93%
• EPS Growth: 6.05%
• Country: JP
• Employees: 1,249
• Sector: Financial
• Sector Strength: 71
• Industry: Financial - Data & Stock Exchanges
• EPS (TTM): 16.42
• Shares Outstanding: 1,044,578,400
• 10 Day Avg. Volume: 4,204,330
• 30 Day Avg. Volume: 3,187,090
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ¥2,050.26
• Price Target Upside: 23.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: ¥1,836.00 ▲(10.77% Upside)

Japan Exchange Group's overall stock score is driven primarily by its strong financial performance, characterized by robust revenue growth, profitability, and cash flow management. Technical analysis indicates strong momentum but warns of potential overbought conditions. The valuation is a concern with a high P/E ratio, though the dividend yield offers some compensation. The absence of earnings call and corporate events data did not impact the score.

Japan Exchange Group Business Overview & Revenue Model

Company Description

Japan Exchange Group, Inc. provides and operates markets for exchange-traded financial instruments in Japan. The company offers market facilities for securities, securities index futures, securities options, commodity futures, and commodity index futures trading, as well as financial instruments obligation assumption services; and publishes market quotations and facilitates fairness of securities trading. It is also involved in the self-regulatory operations, including listing examination, market surveillance and compliance, listed company compliance, and examination and inspection of participants. In addition, the company offers clearing and settlement services, as well as information services. Japan Exchange Group, Inc. was incorporated in 1949 and is headquartered in Tokyo, Japan.

How the Company Makes Money

Japan Exchange Group generates revenue through several key streams. The primary source is transaction fees charged on the trades executed on its platforms, encompassing equities, derivatives, and other financial instruments. Additionally, JPX earns from listing fees imposed on companies that wish to list their securities on the exchange. The company also derives income from providing market data and information services to financial institutions and investors. Another significant revenue source is clearing and settlement services, where JPX offers post-trade processing solutions. Finally, strategic partnerships and collaborations with domestic and international financial entities enhance its service offerings and contribute to its financial performance.

Japan Exchange Group Financial Statement Overview

Summary

Japan Exchange Group exhibits a robust financial performance across all verticals. The income statement highlights strong revenue growth and profitability margins, while the balance sheet indicates low leverage and effective equity utilization. The cash flow statement reflects solid cash generation and conversion, enhancing the company's financial flexibility.

Income Statement

The company shows a strong revenue growth trajectory with a consistent increase in total revenue over the years, particularly a 7.4% growth from 2024 to 2025. Gross profit margin remains high, consistently above 80%, indicating efficient cost management. Net profit margin is stable, slightly above 37%, suggesting effective profitability. EBIT and EBITDA margins also reflect strong operational efficiency, maintaining healthy levels. These factors contribute to a robust income statement performance.

Balance Sheet

The balance sheet reflects a sound financial structure. The debt-to-equity ratio is low at 0.15, indicating conservative leverage and low financial risk. Return on equity is consistently strong, showcasing effective use of equity to generate profits. The equity ratio is around 0.40%, reflecting a balanced capital structure with a significant portion of assets financed through equity. Overall, the company's balance sheet is stable with manageable debt levels.

Cash Flow

The company demonstrates strong cash flow management. Free cash flow has shown significant growth, particularly an increase of 15.6% from 2024 to 2025, indicating good cash generation capabilities. The operating cash flow to net income ratio exceeds 1, suggesting a healthy cash conversion from profit. Free cash flow to net income ratio is also favorable, reinforcing efficient cash utilization. These aspects highlight a positive cash flow position.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	164.17B	152.87B	134.50B	135.64B	133.70B
Gross Profit	133.33B	122.81B	66.93B	72.41B	72.30B
EBITDA	107.45B	104.31B	85.91B	89.93B	89.09B
Net Income	61.09B	60.82B	46.34B	49.95B	51.39B
Balance Sheet
Total Assets	85.40T	80.68T	82.19T	71.46T	60.08T
Cash, Cash Equivalents and Short-Term Investments	98.43B	128.02B	211.21B	211.35B	225.01B
Total Debt	52.49B	52.48B	52.97B	52.47B	52.46B
Total Liabilities	85.05T	80.34T	81.87T	71.14T	59.75T
Stockholders Equity	340.82B	328.36B	312.73B	315.65B	321.39B
Cash Flow
Free Cash Flow	84.42B	73.02B	55.58B	43.26B	56.31B
Operating Cash Flow	86.14B	79.57B	66.88B	58.19B	71.75B
Investing Cash Flow	-61.22B	-7.17B	-8.52B	-13.30B	-1.51B
Financing Cash Flow	-54.50B	-43.20B	-52.90B	-59.75B	-33.93B

Japan Exchange Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1657.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:8697, the sentiment is Positive. The current price of 1657.5 is above the 20-day moving average (MA) of 1551.77, above the 50-day MA of 1524.52, and above the 200-day MA of 1621.01, indicating a bullish trend. The MACD of 47.28 indicates Negative momentum. The RSI at 64.70 is Neutral, neither overbought nor oversold. The STOCH value of 78.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for JP:8697.

Japan Exchange Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
8473	77 Outperform	$2.03T	9.00	17.79%	2.61%	26.89%	150.74%
8604	76 Outperform	$3.17T	8.77	11.06%	3.46%	4.32%	80.03%
8601	74 Outperform	¥1.54T	9.90	10.33%	4.93%	1.09%	33.43%
8309	72 Outperform	$2.99T	10.65	9.20%	3.43%	19.13%	160.69%
8697	69 Neutral	¥1.72T	27.63	20.33%	2.80%	6.93%	6.05%
Sector *	68 Neutral	$17.49B	11.70	10.34%	3.85%	9.75%	0.63%
8308	66 Neutral	$3.44T	15.04	8.46%	1.68%	14.71%	29.60%

Japan Exchange Group Corporate Events

Japan Exchange Group Reports Q1 2025 Financial Results with Positive Growth

Japan Exchange Group, Inc. reported its consolidated financial results for the three months ending June 30, 2025, showing a year-on-year increase in operating revenue and net income. The company also conducted a 2-for-1 share split effective October 2024, impacting the calculation of earnings per share. Despite these positive results, the company forecasts a slight decline in operating revenue and net income for the fiscal year ending March 31, 2026. The dividend forecast remains unchanged, with a total expected dividend of 43 yen per share, reflecting a mix of ordinary and special dividends.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.

JPX Completes Share Buyback as Part of Strategic Acquisition Plan

Japan Exchange Group, Inc. announced the completion of its acquisition of 3,457,400 of its own shares, valued at JPY 5.2 billion, as part of a previously outlined plan. This move is part of a broader strategy to acquire up to 40 million shares, reflecting JPX’s commitment to enhancing shareholder value and optimizing capital structure.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.

JPX Updates on Share Buyback Progress

Japan Exchange Group, Inc. announced the status of its acquisition of own shares, following a decision made in April 2025. As of June 30, 2025, JPX acquired 3,571,100 common shares valued at JPY 5,597,146,800 through market purchases on the Tokyo Stock Exchange. This move is part of a broader plan to acquire up to 40 million shares, with a maximum value of JPY 20 billion, by October 2025. The acquisition strategy aims to optimize capital structure and enhance shareholder value, reflecting JPX’s commitment to strategic financial management.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.

JPX Extends Stock Compensation Plan for Executives

Japan Exchange Group, Inc. has announced an extension of the trust period and an additional contribution to its stock-granting trust for executives as part of its stock compensation plan. This move aligns with the start of its Medium-Term Management Plan 2027, aiming to enhance executives’ incentives and align their interests with shareholders for sustainable corporate growth.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.

Japan Exchange Group Announces Share Acquisition Status

Japan Exchange Group, Inc. announced the status of its acquisition of own shares, acquiring 5,404,500 shares valued at JPY 8,632,922,050 between May 1 and May 31, 2025. This move is part of a broader strategy approved by the Board of Directors to acquire up to 40,000,000 shares, reflecting a significant investment in its own equity, which may impact its market positioning and shareholder value.

The most recent analyst rating on (JP:8697) stock is a Buy with a Yen2300.00 price target. To see the full list of analyst forecasts on Japan Exchange Group stock, see the JP:8697 Stock Forecast page.